author(s)
Ujjal Guha and Amitava Ghosh

abstract
This study aims to investigate how inflation responds to monetary policy shocks in India, both overall and at the group level. The process of inflation is the increase of prices over a sustained period of time. Inflationary trends across different eras are examined through an examination of economic, political, and global influences beginning in the early 20th century. Economically advanced countries create policies that enhance their economic growth, while developing countries falter in preparation of sound policies due to insufficient funding, budget shortfalls, and IMF dependency. The development budget in their countries should mainly be increased, while the non-developmental budget should be tightened, as this has a significant impact on controlling inflation and unemployment and promoting economic growth. As a result of inflation, the cost of living has become more expensive, which makes life more miserable for the average person. Additionally, it may reduce the country's international competitiveness. The country's international competitiveness can be adversely affected by an increase in the cost structure and price level. An economy in development is influenced by a variety of factors that are intricately interconnected.